Global Encoder Market Growth 2025-2031

The global Encoder market size is predicted to grow from US$ 3565 million in 2025 to US$ 5103 million in 2031; it is expected to grow at a CAGR of 6.2% from 2025 to 2031.

An encoder is actually a sensor. It is a device that converts input signals or data into digital signals or coded signals through physical effects (such as light, magnetism, capacitance/inductance, mechanics, etc.). According to the detection principle, there are optical, magnetic, and capacitance/inductance types; according to the encoding method, there are absolute and incremental types; according to the measurement method, there are rotary encoding and linear encoding. Encoders can provide high-precision feedback information such as position and speed in application fields such as industrial automation to meet the needs of precision measurement and control.

As a sensor, encoders have significant differences in different application scenarios. For example, rotary encoders have a larger measurement range, while linear encoders have a shorter measurement range and are suitable for short-distance linear measurement applications. The encoder production areas in various regions of the world are mainly distributed in Europe (Germany, Italy, France, etc.), Japan, the United States and China. Europe occupies the vast majority of the market share. Chinese encoder companies still have a certain gap in production capacity and product performance with international leading companies (such as Heidenhain and Tamagawa Seiki). However, with the continuous breakthroughs of Chinese companies in product development technology in recent years, some companies have achieved breakthroughs in revenue and shipments, and have occupied a certain market share in the Chinese servo encoder market, such as Zhejiang Reagle Sensing.

Encoders have different types according to different principles. This article subdivides them into rotary encoders and linear encoders according to the differences in encoder measurement methods, and can be further subdivided into incremental and absolute types. Incremental encoders have certain advantages in price under the same parameters as absolute encoders, but as the market share of absolute encoders continues to increase, the price gap between the two is also narrowing. At present, in some new equipment, absolute encoders will be the best choice. The core areas targeted by rotary encoders and linear encoders are different. For example, in the field of machine tools, linear encoders are used in the closed-loop servo system of CNC machine tools and can be used to detect linear displacement or angular displacement. Their price is closely related to their accuracy, measurement range, and resolution. In this field, the price of linear encoders is much higher than that of rotary encoders, but from the perspective of various downstream application scenarios, rotary encoders currently still occupy a large market share, reaching 68% in 2023, and are expected to maintain their leading position in the next few years.

From the perspective of downstream applications of encoders, encoders are just a part of various types of equipment, mainly used directly on motors, such as stepper motors and servo motors. The downstream of motors involves all walks of life. At present, the machine tool market accounts for the largest share, and the machine tool market share reached 30% in 2023. In addition, the robot market has greatly promoted the surge in demand for encoders in recent years with the development of high-tech equipment such as industrial robots, AGV/AMR mobile robots, semiconductor manipulators, and medical robots. With the accelerated advancement of new industrialization, encoders, as core components of robots, will further increase their market share in the future. It is expected that by 2030, encoders will account for 25.4% of the robot market.

LP Information, Inc. (LPI) ' newest research report, the “Encoder Industry Forecast” looks at past sales and reviews total world Encoder sales in 2024, providing a comprehensive analysis by region and market sector of projected Encoder sales for 2025 through 2031. With Encoder sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Encoder industry.

This Insight Report provides a comprehensive analysis of the global Encoder landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyzes the strategies of leading global companies with a focus on Encoder portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Encoder market.

This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Encoder and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Encoder.

This report presents a comprehensive overview, market shares, and growth opportunities of Encoder market by product type, application, key manufacturers and key regions and countries.

Segmentation by Type:
Rotary Encoder
Linear Encoder

Segmentation by Application:
Machine Tools
Robots
Packaging Equipment
Conveyor
Textile Machinery
Construction Mchinery
Medical Equipment
Elevators
Automotive
Others

This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries

The below companies that are profiled have been selected based on inputs gathered from primary experts and analysing the company's coverage, product portfolio, its market penetration.
Heidenhain
Tamagawa Seiki
Sick
Renishaw
Pepperl+Fuchs
Dynapar
Baumer
Sensata Technologies
Broadcom
Omron
TR Electronic
Balluff
Rockwell Automation
Bourns
Zhejiang Reagle Sensing
TE Connectivity
Fagor Automation
Kubler
SIKO
JTEKT Electronics
POSITAL (FRABA)
Changchun Yuheng Optics
Lenord+Bauer
Faulhaber
Lika Electronic
Gurley Precision Instruments
Mitutoyo
Citizen Micro Co., Ltd
ELCO Industrie Automation GmbH
Weihai Idencoder Electronic Technology
Autonics Corporation
Precizika Metrology
Givi Misure srl
Advanced Micro Controls Inc (AMCI)
Allient Inc
Elap srl
Pilz GmbH & Co. KG
ifm electronic
Encoder Products Company
Quantum Devices
Netzer
Contelec AG
ELGO Electronic GmbH & Co. KG
Beijing KingKong Technology

Key Questions Addressed in this Report

What is the 10-year outlook for the global Encoder market?

What factors are driving Encoder market growth, globally and by region?

Which technologies are poised for the fastest growth by market and region?

How do Encoder market opportunities vary by end market size?

How does Encoder break out by Type, by Application?

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